Secured Party Services for Commercial Lenders
and their Legal Counsel
(Servicing Operating, Distressed and Non-Operating Entities)
Preserving the Interests of the Secured Lender in a Commercially Reasonable Manner.
An expanded Scope of Services, with supporting detail, is available upon request.
Secured Party Collateral Controls & Possession Services
It is generally recognized that as the Secured Lender, you have two primary objectives following a debtor’s default in a secured transaction:
1. Disposition of the collateral must be effected in a commercially reasonable manner.
2. Obtain the highest possible price in a collateral disposition.
Service Overview
(A detailed and expanded “Scope of Services” (109 issues) is available upon your request.)
• Engagement Review with Secured Party and Counsel
• Provider Documentation Reviewed
• Provider Liability Insurance / Agreements in Place
• Review and Approval of Pre-Possession Procedures
• Rapid Response as Directed
• Notification to Local Authorities
• Debtor Announcements to Employees
• Monitor Employee Departures /Personal Property Inspections
• Secured Party Signage
• Initiate Accessibility Controls
• NO UNATHORIZED ACCESS
• EFFECT PHYSICAL POSSESSION
• Marshall Assets / Asset Security
• Identify and Protect Leased Items
• On-Site Lender’s Exposure Analysis
• Debtor Daily On-Site Monitoring
• Validate On-Site Cash / Check Books / Records
• Debtor and Collateral Control Procedures
• Accounts Receivable Notification / Proceeds Control
• Keeper Services Options/ Security Personnel
• Arrange for Outside Services as Directed
• Oversee Manufacturing Process
• Monitor Shipments Out / Inventory In
• Insurance Coverage / Rent / U.S. Post Office
• Utilities and Seasonal Maintenance Coverage
• Communication Arrangements
• Daily Lender/Secured Party Reporting
A few mistakes, such as inefficient collateral and proceeds controls, errors in asset and site management, could jeopardize or seriously affect a material recovery. Inappropriate actions by lender’s personnel, inadvertently or otherwise, could also be detrimental to security interests.
It is unnecessary, and usually unwise, to utilize your own internal lending and credit officers for such activities. In fact, most are inexperienced in dealing with such critical credit and control situations. Your objectives will be scrupulously addressed by seasoned personnel.
Costs and expenses associated with such intense monitoring and controls can now be identified, justified, documented and may be materially recovered (when provided by Agreement and authorized by applicable law). Recovery of costs is usually not complete, nor in many cases even identifiable, when using internal personnel over what may be an extended period of time.
Liability coverage is maintained by the Provider.
A no-obligation discussion of your needs and objectives is always welcome.
Secured Party Clients may utilize limited selected services or require total programs. We are adaptable to specific situations:
• Evaluation of Lender’s / Debtor’s Default Emergency Situation (16 issues examined)
• Establish Pre-Possession Procedures (25 Issues examined)
• Effect Possession (29 issues examined)
• Continuing Keeper Services (if applicable – 19 issues examined)
• Separate Secured Party Service Options as may be required (20 issues examined)
A detailed Scope of Secured Party Collateral Control & Possession Services, with specific issues presented, is available upon your request. Please utilize “Contact Us”.
The Provider will present a Letter Agreement based upon your specific requirements. Fees, plus out-of-pocket expenses, are determined on a case-by-case basis. An engagement retainer is required and is usually credited against initial billings.
Throughout assigned engagements we work closely with the Lending Officer, the Loan Workout Group, the Lender’s Legal Counsel, Auctioneers, the Courts and other appropriate professionals as may be directed. While we are sensitive to a debtor’s stress, our first interest must be your best interests. Collateral and debtor activity reporting is always a constant.
Special Engagement Programs with Lender Workout Groups – Call Us.
We work closely with legal counsel and associated professionals.
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Utilization of The Easton Group LLC means costs and expenses associated with such situations may now be identified, justified, documented and recovered rather than internally absorbed (when provided for by agreement and as authorized by applicable laws). Throughout these processes we work closely with the Lending Officer, the Loan Workout (Special Assets) Group, the Lender’s Legal Counsel and other Professionals as may be required and/or assigned. We always seek to serve the best interests of the secured party and would err on the side of caution.
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Commercial Lender and Debtor Services
The below supplemental internal compliance reviews and assessments not only provides your institution with timely and unbiased evaluations but, at the same time, will not interfere with the daily duties of bank personnel. Client Lenders may select all of the below loan and compliance audits or specify limited areas to be address – on a revolving basis or single engagement arrangement. Confidentially Agreements will be executed.
Services are provided for the developing and mature borrower as well as for distressed situations
• Temporary CFO Services
• Short-Term Business Finance Counseling
• Evaluation of a Lender’s/Debtor’s
Emergency Situation – in conjunction with Counsel
• Commercial Portfolio Loan Reviews – Specific or Annualized
Loan Policy Compliance Audits
Loan Documentation Audits
Loan Administration Audits
Risk Rating Evaluation Reviews
Short-Term On-site Debtor /Collateral Monitoring
Management Reporting
• Lender / Borrower Mediations
• Establishment of De Novo
Loan Production Offices
Engagements are supported by a mutually agreeable Letter Agreement. Fees may be based on an hourly rate, a per diem rate or on a project basis. Inasmuch as The Easton Group LLC is limited to the number of simultaneous engagements we can perform, your early notification would be appreciated and a reserve commitment may be established.
Independent • Experienced • Focused • Objective
For specifics regarding engagement information please click “Contact Us”.
For rapid response to special Secured Party situations, please call ASAP to facilitate scheduling requirements.
Kenneth P. Easton, Jr., President
The Easton Group, LLC
Post Office Box 16053 – Hooksett NH 03106-6053
Cell: (603) 533-1935 Fax: (603) 485-4344
E-Mail: eastongroupllc@comcast.net
Website: www.SurvivingYourBusinessDebt.com
